Iowa Income Tax

The rules and regulations regarding Iowa income tax are governed by the Iowa Department of Revenue (IDR). The IDR has the principal responsibility for collection of income tax in the state of Iowa.

The rules of income tax in Iowa are strict in nature. The individual taxpayers and corporate houses have to comply with the rules and regulations quite sincerely.

The different types of taxes that are prevalent in the state of Iowa include the following:

Automobile Rental Tax

Contractor Registration Fee

Corporate Income Tax

Corporation Registration Fee

Drug Stamp Tax

Environmental Protection Charge

Franchise Tax
Gambling, social and charitable tax
Hazardous Waste Fee
Hotel/Motel Tax
Household Hazardous Materials Fee
Household Hazardous Waste Fee
Individual Income Tax
Individual Income Tax EMS Surtax
Individual Income Tax School District Surtax
Inheritance and Estate Tax
Insurance Premium Tax
Liquor Taxes

Local Option Sales Tax, Mobile Home Tax, Motor Fuel Tax, Motor Vehicle Lease Tax, Motor Vehicle Use Tax, Ocean Marine Profit Tax, Property Tax Credits, Property Tax Levied Before Credits, Real Estate Transfer Tax, Rent Reimbursement Tax, School Infrastructure Local Option Tax, State Sales Tax, Tobacco Products Tax, Unemployment Taxes, Use Tax and Cigarette Tax are some other taxes that are levied in state of Iowa.

Iowa income tax can be categorized into the following types:

Corporate Income Tax in Iowa: The net income of the corporations carrying out their businesses in Iowa or companies receiving earnings from real estate in Iowa is taxed. The tax rates are 6% on first $25,000, 8% on next $75,000, 10% on next $150,000, and 12% on the whole $250,000.
Individual Income Tax in Iowa: The net incomes of trusts, individuals and estates are taxed. It is mandatory for persons who earn a net income of more than $9,000 to file an income tax return in Iowa. Taxpayers who are married and have a consolidated net income of more than $13,500 have to pay income tax in Iowa. A person who claims to be a dependent on the tax return of another person in Iowa and earns a net income of $5,000 or greater than $5,000 has to pay income tax in Iowa.

In both the above cases, the distribution of funds is done through the State General Fund.

Iowa Department of Revenue also conducts research and development activities on a continuous basis. The principal objective behind these research activities is to create a strong taxation infrastructure in Iowa so that it contributes towards the economic growth of the state.

Iowa Department of Revenue also imparts educational programs for the residents of Iowa through a number of tax specialists. They offer a variety of information to the taxpayers regarding different types of taxes, such as sales tax, consumption tax, local option tax, employment tax, sole proprietorship tax, and many other types of taxes.

The IDR provides the opportunities of online income tax payment and income tax return filing services, which can be categorized into the following types:

ePay or Direct Debit
ACH Credit
Credit Card
Mailing a check

Contact Details:

Iowa Department of Revenue (IDR)

Hoover Building
Taxpayer Services/4th Floor
1305 E. Walnut
Des Moines, Iowa 50319
Tel: 515-242-6226